Investing.com - The U.S. economy added more jobs than anticipated in March, but the previous month’s figure was revised sharply lower and the unemployment rate rose, adding to the economic uncertainty as Federal Reserve officials attempt to determine the path ahead for interest rates.
Nonfarm payrolls for the month came in at 228,000, a jump from the revised lower 117,000 in February, data from the Labor Department’s Bureau of Labor Statistics showed on Friday.
Economists had anticipated 137,000 jobs in March, while the February figure has previously been 151,000.
Meanwhile, the unemployment rate was 4.2%, a rise from February’s 4.1% pace.
Average hourly wage growth rose by 0.3% on a month-on-month basis, as expected, but above the revised 0.2% figure seen in February.
A degree of uncertainty has gripped the labor market following the mass firings of public sector workers to slash federal government spending and given the likely reluctance by businesses to increase hiring amid the tariffs turmoil.
Data released earlier this week showed that U.S. job openings fell in February, while private employers in the U.S. added more roles than anticipated in March, according to the ADP National Employment Report.
Investor sentiment towards the U.S. economy going into the jobs report remains downbeat, amid uncertainty that the Trump administration’s upheaval of the trading system will lead to a dramatic slowdown in global growth.
Investors will also likely be keeping an eye on remarks due later in the day from Fed Chair Jerome Powell.
The Federal Reserve maintained its benchmark overnight interest rate steady in the 4.25%-4.50% range at its March meeting, citing the high economic uncertainty.
The policymakers now appear to be caught between an almost certain spike in consumer prices and the mounting risk of recession as consumers and businesses cut back.
Fed fund futures are currently implying around 100 basis points of cuts this year.